According to Bloomberg, the US could begin to refill its Strategic Petroleum Reserve in the third quarter of 2023 if the price is right. The authorities are set to buy crude oil at $70 per barrel.
"I think as we get into the early fall if prices are in the right place, we are still 100% committed to replenishing the SPR over a period of time," Amos Hochstein, the special presidential coordinator for global infrastructure and energy security, said. However, timing depends on various factors, including infrastructure maintenance and pricing.
Previously, the United States sold oil above $90 per barrel. Now, the government is planning to repurchase it at $70 per barrel. Currently, WTI futures for June is $77 per barrel.
In the week ended on April 14, crude in the Strategic Petroleum Reserve fell by 1.6 million barrels to just under 368 million barrels, its lowest level since October 1983. In January 2023, the figure sank by 0.4 million barrels. Over the past two years, the reserve has been continuously declining.
